With mounting costs of public transport and increasing traffic, owning a vehicle of your own has become more of a necessity than extravagance. When compared to cars, a two-wheeler is easier to maintain and consumes less fuel. If you are worried about the unexpected expenses that you will incur if you purchase a motorbike, applying for a two-wheeler loan is the best thing to do. With lot of leading banks in India offering two wheeler loans, you can not only get the vehicle of your dreams in no time but also pay back the loan without any financial stress through easy instalments.
Before applying for a two-wheeler loan, you must always discuss about the prevailing interest rates with your banker and check your affordability. Since the interest rates can make or break your loan deal, always pay attention to the finer details about the rate of interest.
Perfect Personal Loan Deals for you
Also Read: Two Wheeler Insurance.
Features and Benefits of Two Wheeler Loans:
With most of the banks offering loans up to 90% of the on-road price of the vehicle, you can purchase any brand new two-wheeler without any second thoughts.
Burning up all your savings to purchase a two-wheeler is a risky option. Instead, avail a two-wheeler loan to relieve you of the financial burden. As an added advantage, you can also plan your budget effectively and pay back the loan in affordable EMIs.
Two-wheeler loans usually cover the cost of insurance, accessories and registration.
To get more out of your two-wheeler loan, check for loan partnership options with your automobile dealer.
Two-wheeler loan requires minimal documentation and is offered for all sections of people and all class of customers.
The income criteria is also lenient and most of the banks offer motorbike loans for people with an annual income of Rs.50,000.
There is either no prepayment penalty or a nominal foreclosure charge for paying off the two-wheeler loan ahead of the tenure.
Most of the banks also offer flexible repayment options which will enable the customer to choose a comfortable tenure.
Two Wheeler Loan Interest Rates:
The interest rates for two-wheelers loans in India vary between 13% to 27% depending on the bank, type of vehicle, applicant's employment type and source of Income.
The interest rates are usually floating and is linked to the base rates. Because a two-wheeler is a depreciating asset, the interest rates are generally higher when compared to other loan products. Interest rates for two-wheeler loans may also depend on other factors like the tenure, margin and type of vehicle.
Current Two Wheeler Loan Interest Rates:
Given below are the current interest rates for two wheeler loans offered by Indian banks and financiers:
|Name of bank||Two wheeler Interest rate|
|SBI||MCLR + 3.00% = 12.10%|
|HDFC||Super Bike Two wheeler Loan||APR: 9.96% to 15.74%||IRR: 9.95% to 15.50%|
|Two wheeler Loan||11.37% to 33.15%||11.01% to 24.07%|
|Saurashtra Bank||Repayment Period upto 3 Years||15%|
|Repayment Period above 3 Years, upto 5 years||16%|
|Bank of Baroda||One year MCLR + Strategic Premium + 4.00%|
|Punjab National Bank (14.50 %)||In which monthly income is being paid via concerned branch and/ or under check off facility||< 3 years||MCLR+3.10%|
|equal to 3 years||MCLR+3.60%|
|For every other loan including Business concerns||< 3years||MCLR+4.10%|
|equal to 3 years||MCLR+4.60%|
|Power Ride||Upto 36 months||MCLR+1.60%|
|Andhra Bank||For loan term up to 36 months||MCLR + 1.80%|
|For loan terms more than 36 months||MCLR + 1.80% + 0.25%|
|Bajaj Fin Serv||Customers are segregated into three bands, namely,|
|Medium||27% to 30%|
|L & T Finance||Upto 23%; actual rate varies on fluctuations in market and credit worthiness of the borrower|
|UCO Bank||For General category - MCLR of 1 Year + 4.40%|
|Accounts with full liquid collateral security, 1.00% interest Rebate|
|Accounts with 50% liquid collateral security, 0.50% interest Rebate|
|Vijaya Bank||MCLR 1 Year + 2.20% =11.65% p.a. (floating)|
|Oriental Bank of Commerce||Upto 36 months||BR + 0.50% = 10.20%|
|Upto 84 months||BR + 0.75% = 10.45%|
|Shriram City Union Finance||At the lender's discretion on the basis of schemes opted by the borrower|
|Bank of India||For a new vehicle, for all tenures within the repayment period of the scheme||BSS (0.10%) above 1 Year MCLR (Presently 9.50 %)|
|Punjab & Sind Bank||New Vehicles Two Wheeler||One Year MCLR (9.60%)+ 2.00% = 11.60% One year MCLR+3.10% (PER: 13.40% p.a.)|
|Lakshmi Vilas Bank|
|Nainital Bank||Base rate + 0.25% (Floating)|
|City Union Bank||Base rate||Base rate + 7% = 17.50%|
|BPLR||PLR + 1% = 17.25%|
|State Bank of Mysore||Upto 5 years||MCLR + 6.55% = 16.05%|
|State Bank of Travancore||Rs.50000 and below||13.85%|
|State Bank of Patiala||Floating Rate of Interest||15.75% p.a. i.e. 6.25% above MCLR|
|Fixed Rate of Interest||16.00% p.a. i.e. 6.50% above MCLR|
|Central Bank of India||Floating||MCLR + 0.40%|
|Fixed Rate ( Repayment within 36 months)||MCLR + 0.40%|
Eligibility and Documentation for Two Wheeler Loans:
In India, most of the banks offer two-wheeler loans for people in the age group of 18 to 65. The applicant can be a student, a salaried profession or a self-employed customer. Select banks also offer specialized two-wheeler loan products for agriculturists. The income criteria for two-wheeler loans depend on the type of loan and is at the discretion of bank.
Documents - The applicants have to submit an ID proof and a proof of address. Income documents like bank account statements, salary slips, income tax return statements and certificate of employment is also required. Agriculturists and self-employed people have to submit relevant supporting documents to avail a loan for two-wheeler.
How to Compare Two Wheeler Interest Rates?
Before deciding on a two-wheeler loan product, carefully analyze about all the features that it has to offer.
Check if the interest rates for two-wheeler loan with regards to a particular bank is floating or fixed. Also, use a two-wheeler loan EMI calculator to decide your loan affordability.
In a two-wheeler loan EMI calculator, all you have to enter is the loan amount, tenure and the interest rates. The calculator will project the monthly EMI along with the repayment schedule which will help you decide if the loan on that interest rate is affordable.
Compare different two-wheeler loan products and check if features like nil-foreclosure charges, insurance and high quantum is offered. Also, make sure you compare the interest rates for two-wheeler loans using a third-party comparison website.
News about Two Wheeler Loan
Electric two-wheelers sales going down due to higher cost margin
Indian market has seen only 4.4 lakh sale of electric motors that is quite meagre compared to the 18 lakh per month sales record of their petrol variants. According to Sohinder Gill, CEO of Hero Electric, lack of awareness and high cost of the vehicles are the vital reasons behind the drop in sales. 18-month battery replacement, difficulty in charging, and craze for better cc and performance among the youths are the other factors contributing to it.
Even after the launch of FY15 portable lithium battery-based e2Ws, which are rechargeable anywhere from mobile phone socket, the sales record of the e2Ws is still low due to their high cost. Low-cost petrol vehicles such as Honda Activa available at Rs.52,000 are more preferred than the e2Ws which cost Rs.84,000.
Fortunately, Okinawa, a Japanese electric scooter has made a sale of 2,000 vehicles in only 8 months. As per Jeetender Sharma, the founder and MD of Okinawa Scooters in India, the company is working vigorously to create awareness among the mass Indian buyers. But the situation will only get better when Government will give increased support to this promising sector to bring down the cost substantially.
19th September 2017
Two-wheeler industry shows firm growth
The two-wheeler industry in India is witnessing an excellent growth after a few months with low revenues. The industry had a growth of 14% in the month of August. Hero MotoCorp was the leader in the market with great sales volumes. The leading motorbike company sold 6,61,490 two-wheelers in August. Meanwhile, Honda Motorcycle and Scooter India (HMSI) sold 5,86,237 two-wheelers to bag the second place.
As per the Society of Indian Automobile Manufacturers (SIAM), the industry made sales of approximately 19 lakh two-wheeler units in the month of August.
Moreover, there are reports that the demand for two-wheelers will increase even more with the arrival of the festive season.
18th September 2017
Bajaj Auto planning to launch electric two-wheelers by 2020
Rajiv Bajaj, the Managing Director of Bajaj Auto, recently announced that the company is going to enter the EV zone by 2020 with its new niche brand ‘Urbanite’. It is the first two-wheeler company in India coming up with a dedicated internal subdivision for electric vehicles. According to Bajaj, Urbanite will stand out of the crowd of the low-cost and low-performance electric vehicles that are recently entering the Indian market. Considering user’s comfort, it is targeting to launch premium electric two-wheelers and three-wheelers that will fit the Indian roads and demographic.
Being a high-performance EV brand, Urbanite is likely to pose a threat to its upcoming counterparts like S340 smart electric scooter from Ather Energy and T6X electric motorcycle from Tork Motorcycles after its release. As per the industry experts, with the launch of electric two-wheelers, Bajaj might gain its lost hold on the Indian scooter market after a long time.
14th September 2017
Updated models of Royal Enfield Classic 350 and Classic 500 released
The models of the Royal Enfield Classic 350 and the Classic 500 were introduced in the market recently. The premium bike manufacturer has released 2 brand new colour schemes for the Royal Enfield Classic series and they are Stealth Black for the Classic 500 and Gunmetal Grey for the Classic 350.
These updated motorbikes will now have a new swing arm and a rear disc brake. These 2 parts have been taken from the Royal Enfield Thunderbird 500.
Anybody who is interested in the new Classic 350 and Classic 500 can book them from 18 September 2017. The on-road Chennai prices for the Classic 500 Stealth Black model is Rs.2.05 lakh and for the Classic 350 Gunmetal Grey is Rs.1.59 lakh.
13th September 2017
Hero Motorcycles Plans to Open 350 New Outlets in Rural Areas
Honda Motorcycles & Scooter India (HMSI) aims to expand its presence in the rural market to capture a bigger share in the domestic two wheeler segment. The two wheeler manufacturing giant plans to open 70% of its 500 new outlets in the rural areas to increase its customer base which stood at 17% in the current fiscal year.
Currently second in terms of bike sales in India, HMSI has set a target of selling 60 lakh two wheelers this fiscal year which is 10 lakh more than the previous fiscal. Simultaneously, the company plans to expand its sales network from 5,200 sales touch points to 5700 outlets.
12th September 2017
Triumph Motorcycles offers a 7-year two-wheeler loan scheme for its bikes with HDFC Bank
Triumph Motorcycles Ltd, the British motorcycle manufacturer is offering a 7-year loan scheme for all its high-end models through its partnership with HDFC Bank. Triumph Motorcycles has a global partnership with Bajaj Auto Ltd to manufacture mid-segment bikes in India. Vimal Sumbly, MD of Triumph Motorcycles (India) Private Ltd said that the loan scheme will make the high-end models affordable and attract more customers.
The cost of Triumph motorcycles in India ranges from Rs.7.3 lakh to Rs.23 lakh. Triumph Motorcycles with HDFC is offering a 7-year loan at 11.5% interest rate. The monthly installment will be Rs.8,000 to Rs.10,000. Sale of superbikes (bikes with engine capacity of more than 500cc) is growing steadily. HDFC Bank offers a two-wheeler loan scheme called Super Bike Loan with a funding of up to 85% of the cost of the bike at 12.9% interest rate. You can also get funding up to Rs.2 lakh for bike accessories.
11th September 2017
Dark Night Edition two-wheelers introduced by Yamaha
Recently, Yamaha has acquainted three of its earlier products with a new version named ‘Dark Night’. Featuring a matte black paint scheme and chrome graphics, this edition has already started gaining popularity among the new-gen users.
Yamaha is offering this new Dark Knight colour on three of its popular models namely, FZS-FI, Cygnus Ray ZR and Saluto RX. While the FZS-FI is a naked street bike priced at Rs.83,042 in Yamaha’s ex-Delhi showroom, the Cygnus Ray ZR is a new-gen scooter priced at Rs.53,451 and Saluto RX is an 110cc motorcycle costing Rs.47,721. With this new edition, Cygnus Ray ZR and Saluto RX are now having five colours while FZS-FI is offering six colour options.
Buyers who want to get this new colour edition have to shell out an added amount of Rs.1000 on the actual price of these three Yamaha models that are on offer.
8th September 2017
Benelli to roll out two more bikes into the Indian market
A move that would delight all bike aficionados across the country, Italian bike manufacturers are set to roll out two more bikes into the Indian market - the Zafferano 250 and the MotoBi-250 Patagonian Eagle. The Zafferano is a European-looking (although we suspect its origins are actually Oriental) maxi-scooter that the Italian two-wheeler brand sells in Indonesia. It is powered by a 249.7cc, single-cylinder short-stroke motor that makes 21hp of power and 20.83Nm of torque, which puts it almost at par with the Yamaha FZ25 while the Patagonian Eagle is powered by a carburetted 251.8cc, two-valve/cylinder, parallel-twin motor which seems to sport air-cooling fins along with a small radiator, and claims to be liquid-cooled. Power output is a measly 17.67hp with max torque rated at 16.5Nm, sent to the rear wheel through a five-speed transmission. To put those figures into perspective, the Hyosung Aquila 250’s similar capacity V-twin engine makes 26.57hp and 21.37Nm. That said, the showroom price for these Italian bikes are yet to be announced.
16th August 2017
Bajaj launches the new Pulsar 220F
The Bajaj Pulsar 220 is the largest selling 200 CC Bajaj motorcycle. The company has recently launched the new model of the Bajaj Pulsar 220 which is compliant with the Bharat Stage IV emission norms. The Bajaj Pulsar 220F was launched in July 2007, which was equipped with a fuel injection system. The new Bajaj Pulsar 220F has been priced at Rs.91,201 (ex-showroom Delhi) and is Rs.2,274 more than its sibling the Bajaj Pulsar 220. The engine in the Bajaj Pulsar 220F has been upgraded to the Bharat Stage IV norms, but most of the engine specifications remain the same. The motorcycle comes with a 220 CC, oil-cooled, single cylinder engine, which delivers the power through a five-speed gearbox to the rear wheel. The new motorcycle will feature a matte black finish on the exhaust canister, a cool-blue backlit instrument cluster, and a new seat for better riding comfort.
5th January 2017
Yamaha and Honda may soon tie-up for Japanese Market
In what may come as a historic event, Honda Motor Co and Yamaha motor Co may soon enter into a tie-up for small scooters to launch new lines for the Japanese markets. This is considered historic given their heated rivalry that stretches back a number of decades. For the first time ever, Honda, the world's largest manufacturer of two wheelers will begin work on Manufacturing Yamaha's 50cc scooters in its plant located in the south of Japan by the latter half of 2018. Reuters reports that the tie-up comes in face of shrinking two-wheeler market in Japan.
10th October 2016